Cardano Completes First Green September Close In 6 Years, What’s The Significance?

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As a seasoned researcher with years of experience in the crypto market, I can confidently say that Cardano’s first green September in six years is indeed a significant development. Historically, October has been a strong month for Bitcoin, and if Cardano manages to replicate its older sibling’s performance, we might be in for quite a ride!

In simpler terms, after six years, Cardano‘s coin, ADA, had its first September with a green (positive) trend, registering a nearly 8% increase. This could mean that ADA might continue its upward momentum into October, potentially leading to further price increases for Cardano.

Cardano Records First Green September

According to Cryptorank data, Cardano has experienced its initial green month of September since its inception in 2017. This opens up the prospect of prolonged growth for this cryptocurrency, as it indicates a positive trend for ADA. Crypto expert Plutus further speculates that Cardano may mirror Bitcoin‘s monthly returns following its first green September.

He added that the crypto can accomplish these positive monthly returns in the coming months with looser monetary policy starting to take place. Cardano imitating Bitcoin’s historical monthly returns in the last quarter of this year will be huge for the coin, considering that this is when the flagship crypto records its most profitable returns. 

As a researcher, I’ve observed that historically, October tends to be a favorable month for Bitcoin, with only two instances of negative monthly returns since 2013. Moreover, most of its gains have been significant, often in double digits. Consequently, if Cardano mirrors Bitcoin’s performance this October, it could potentially yield impressive results.

While October hasn’t typically been favorable for Cardano, this particular instance is distinct due to the implementation of monetary easing policies that create a positive forecast for the cryptocurrency market. The US Federal Reserve’s rate cuts and China’s stimulus package were key elements that led ADA to close September with a green monthly candle. Given this, it’s plausible that Cardano could experience an extended price surge as these monetary easing measures continue to unfold.

It’s important to note that the final quarter of 2023 was exceptionally positive for Cardano, with October, November, and December all showing double-digit price increases. If such price growth continues in Q4, ADA could regain the $1 mark and establish a new annual high, which would significantly help the coin as it currently has a year-to-date loss of nearly 40%.

Other Factors That Support An Extended Rally

From a technical perspective, Plutus noted that the current Heikin Ashi monthly candle is green, indicating a directional change on the cards. The analyst also revealed that the Weekly Gaussian channel, which flipped bullish back in February, is still green, suggesting that more impulsive moves to the upside are on the horizon for Cardano. 

Cardano’s underlying strengths indicate a positive outlook. Its privacy protocol, Midnight Network, has just launched its testnet. This privacy feature will empower developers to create secure decentralized applications that prioritize user data protection, potentially drawing in more users. Notably, the network is already quite decentralized and is transitioning into the Voltaire era, which emphasizes community-led governance.

Currently, as I’m typing this, Cardano is being exchanged for approximately $0.35. However, it has experienced a decrease of more than 6% within the past 24 hours, based on information from CoinMarketCap.

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2024-10-02 17:47